Media Release Workplace Relations Productivity Inquiry

Media Release
Workplace Relations Productivity Inquiry
Tuesday 17 March, 2015
The Australian Hotels Association (AHA) and Accommodation Association of Australia (AAoA)
have made a joint submission in response to the Productivity Commission’s Inquiry into
Workplace Relations.
Industrial relations and economic data indicate that Australia’s labour productivity requires
significant improvement. “Despite most regulations having worthwhile objectives, many are
developed without sufficient regard to productivity and consideration about how objectives
could be achieved in more cost effective ways” commented AHA National CEO Stephen
Businesses that require a large proportion of labour to operate will be heavily influenced by
the degree of workplace relations regulation. Current regulations are inconsistent with the
demand for services 24/7 in today’s society. The majority of customer demand for hospitality
falls outside the 9am to 5pm Monday to Friday period on which the current industrial system is
Mr Ferguson said that “Governments have the ability to influence the productivity of
businesses via three policy channels. These include incentives that foster domestic & foreign
competition, capabilities that promote human resources and knowledge systems, institutions
and infrastructure and flexibilities that allow businesses to make necessary changes to realise
productive potential”.
The submission provides a number of recommendations having regard to the key policy
areas under flexibilities policy concerned with the degree of regulation in areas such as
penalty rates, public holidays and part-time/casual employee arrangements.
In simple terms increased flexibility at a workplace level will bring about increased
productivity. A renewed focus on flexibility and fairness in the Australian workplace relations
system will very likely have a positive effect on labour productivity and the Australian
For media comment please contact AHA National CEO Stephen Ferguson on 0412 654 000.